Blockchain Association pushes SEC to modernize 2005-era market rules

In a comment letter submitted on August 17, the industry group advocated for the removal of Rules 611 and 610(e) of Regulation NMS. These provisions, which currently mandate specific price protections and restrict how markets display quotations, were designed for a pre-blockchain era. The association contends that these requirements no longer align with modern, high-speed automated markets and serve only to impose unnecessary costs on participants.

The push for regulatory relief focuses on the potential for blockchain-based financial infrastructure to offer a more efficient alternative to existing systems. By rescinding these rules, the group believes the SEC would provide the flexibility needed to recognize onchain execution as a legitimate, compliant method for achieving fair and efficient trading. The association argues that modern execution standards should weigh multiple factors—such as the unique benefits of tokenized assets—rather than focusing solely on quoted prices.

This appeal arrives as several firms, including Ondo Finance and Securitize, have already begun testing models that bridge traditional securities with public networks like Ethereum, Solana, and Avalanche. While the SEC continues to deliberate on how these digital representations fit within the current market framework, the Blockchain Association’s filing underscores a growing demand for legal clarity. They maintain that the SEC must now formally acknowledge that transactions completed on public networks can meet the same high standards of execution required by traditional broker-dealers.